At the top end of the scale, the equity institutions such as pension and life funds, which tend to buy larger properties, will not be able to justify the low yields either, when a relatively risk-free investment such as gilt-edged bonds are starting to yield a similar amount as prime high street retail.

To understand this, the supporting graph shows how initial yields and equivalent rental yields, which take into account future rental growth, have been falling for the last five years, compared to 10-year gilt-edged bonds and the five-year swap rate, both of which have been rising.

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